here's the extended output:

e/user # apt-get update
Hit http://repository.maemo.org fremantle-1.2 Release.gpg
Hit https://downloads.maemo.nokia.com ./ Release.gpg
Ign http://repository.maemo.org fremantle-1.2/free Translation-en_US
Ign http://repository.maemo.org fremantle-1.2/non-free Translation-en_US
Hit http://repository.maemo.org fremantle-1.2 Release.gpg
Ign http://repository.maemo.org fremantle-1.2/free Translation-en_US
Ign http://repository.maemo.org fremantle-1.2/non-free Translation-en_US
Get:1 http://repository.maemo.org fremantle Release.gpg [489B]
Ign http://repository.maemo.org fremantle/free Translation-en_US
Ign https://downloads.maemo.nokia.com ./ Translation-en_US
Ign http://repository.maemo.org fremantle/non-free Translation-en_US
Hit http://repository.maemo.org fremantle Release.gpg
Hit https://downloads.maemo.nokia.com ./ Release.gpg
Ign http://repository.maemo.org fremantle/free Translation-en_US
Ign http://repository.maemo.org fremantle/non-free Translation-en_US
Ign https://downloads.maemo.nokia.com ./ Translation-en_US
Get:2 http://moff.mozilla.com chinook Release.gpg [189B]
Ign http://moff.mozilla.com chinook/release Translation-en_US
Hit https://downloads.maemo.nokia.com ./ Release.gpg
Get:3 http://moff.mozilla.com chinook Release.gpg [189B]
Ign http://moff.mozilla.com chinook/release Translation-en_US
Get:4 http://moff.mozilla.com chinook Release.gpg [189B]
Ign https://downloads.maemo.nokia.com ./ Translation-en_US
Ign http://moff.mozilla.com chinook/release Translation-en_US
Hit https://downloads.maemo.nokia.com ./ Release
Hit https://downloads.maemo.nokia.com ./ Release
Hit https://downloads.maemo.nokia.com ./ Release
Ign http://repository.sygic.com fremantle Release.gpg
Ign http://repository.sygic.com fremantle/non-free Translation-en_US
Ign https://downloads.maemo.nokia.com ./ Packages/DiffIndex
Ign http://codex.xiaoka.com fremantle-1.2 Release.gpg
Ign http://codex.xiaoka.com fremantle-1.2/free Translation-en_US
Ign http://codex.xiaoka.com fremantle-1.2/non-free Translation-en_US
Hit http://repository.maemo.org fremantle-1.2 Release
Ign https://downloads.maemo.nokia.com ./ Packages/DiffIndex
Hit http://repository.maemo.org fremantle-1.2 Release
Get:5 http://repository.maemo.org fremantle Release [7958B]
Hit http://repository.maemo.org fremantle Release
Hit http://moff.mozilla.com chinook Release
Ign https://downloads.maemo.nokia.com ./ Packages/DiffIndex
Hit http://moff.mozilla.com chinook Release
Hit https://downloads.maemo.nokia.com ./ Packages
Hit https://downloads.maemo.nokia.com ./ Packages
Hit http://moff.mozilla.com chinook Release
Hit https://downloads.maemo.nokia.com ./ Packages
Ign http://repository.sygic.com fremantle Release
Hit http://codex.xiaoka.com fremantle-1.2 Release
Ign http://repository.maemo.org fremantle-1.2/free Packages/DiffIndex
Ign http://repository.maemo.org fremantle-1.2/non-free Packages/DiffIndex
Ign http://repository.maemo.org fremantle-1.2/free Packages/DiffIndex
Ign http://repository.maemo.org fremantle-1.2/non-free Packages/DiffIndex
Ign http://repository.maemo.org fremantle/free Packages/DiffIndex
Ign http://repository.maemo.org fremantle/non-free Packages/DiffIndex
Ign http://repository.maemo.org fremantle/free Packages/DiffIndex
Ign http://repository.maemo.org fremantle/non-free Packages/DiffIndex
Get:6 http://moff.mozilla.com chinook Release [759B]
Ign http://moff.mozilla.com chinook Release
Get:7 http://moff.mozilla.com chinook Release [759B]
Ign http://moff.mozilla.com chinook Release
Get:8 http://moff.mozilla.com chinook Release [759B]
Ign http://moff.mozilla.com chinook Release
Ign http://repository.sygic.com fremantle/non-free Packages/DiffIndex
Ign http://codex.xiaoka.com fremantle-1.2/free Packages/DiffIndex
Ign http://codex.xiaoka.com fremantle-1.2/non-free Packages/DiffIndex
Hit http://repository.maemo.org fremantle-1.2/free Packages
Hit http://repository.maemo.org fremantle-1.2/non-free Packages
Hit http://repository.maemo.org fremantle-1.2/free Packages
Hit http://repository.maemo.org fremantle-1.2/non-free Packages
Get:9 http://repository.maemo.org fremantle/free Packages [5879kB]
Get:10 http://repository.maemo.org fremantle/non-free Packages [602kB]
Hit http://repository.maemo.org fremantle/free Packages
Hit http://repository.maemo.org fremantle/non-free Packages
Ign http://moff.mozilla.com chinook/release Packages/DiffIndex
Ign http://moff.mozilla.com chinook/release Packages/DiffIndex
Ign http://moff.mozilla.com chinook/release Packages/DiffIndex
Hit http://repository.sygic.com fremantle/non-free Packages
Hit http://codex.xiaoka.com fremantle-1.2/free Packages
Hit http://codex.xiaoka.com fremantle-1.2/non-free Packages
Hit http://moff.mozilla.com chinook/release Packages
Hit http://moff.mozilla.com chinook/release Packages
Hit http://moff.mozilla.com chinook/release Packages
Fetched 6493kB in 37s (173kB/s)
Reading package lists... Done
W: Conflicting distribution: http://repository.maemo.org fremantle-1.2 Release (expected fremantle-1.2 but got )
W: GPG error: http://moff.mozilla.com chinook Release: The following signatures couldn't be verified because the public key is not available: NO_PUBKEY 667387BFFF445C24
W: GPG error: http://moff.mozilla.com chinook Release: The following signatures couldn't be verified because the public key is not available: NO_PUBKEY 667387BFFF445C24
W: GPG error: http://moff.mozilla.com chinook Release: The following signatures couldn't be verified because the public key is not available: NO_PUBKEY 667387BFFF445C24
W: Duplicate sources.list entry http://repository.maemo.org fremantle-1.2/free Packages (/var/lib/apt/lists/repository.maemo.org_extras_dists_fremantle-1.2_free_binary-armel_Packages)
W: Duplicate sources.list entry http://repository.maemo.org fremantle-1.2/non-free Packages (/var/lib/apt/lists/repository.maemo.org_extras_dists_fremantle-1.2_non-free_binary-armel_Packages)
W: You may want to run apt-get update to correct these problems
/home/user #

Ehmm... Which model of the device do you have? N900?
Telescope is only for N8x0 tablets. If you have N900, you don't need Telescope — you already have visual task switching and fullscreen application menu in Maemo5. Telescope was created to give the same experience to owners of great but legacy N8x0 devices.
Enjoy your N900

oh wtf haha alright sorry for the confusion! i thought telescope was a better visual task swticher cuz they were significantly larger thumbnails as well as its capability in portrait mode lmao.. which raises the question why ours isn't like that

Because no one have tried to improve hildon2 in maemo5 yet
AFAIK, hildon is fully opensourced now, including hildon2 from Maemo5. So, if you interested, you can freely hack it

Add the following line to /etc/telescope.keys

press(F6): shell(/usr/bin/oss-xterm)

Press fullscreen key in telescope to launch xterm. Close xterm and you now have a zombie process until you restart telescope. Works with any application launched with telescope's shell command.

This bug helped me test zombie highlighting in my app but now I'm finished so you can fix it if you want.

Thank you! Actually, i have't tested this functionality very carefully (though it was working for a couple of randomly chosen commands). This is easy to fix because i already have working launching code written by angun for Launcher part

I'm having a few problems on my N800 since I updated to the latest RC version of Telescope. After I first click on Telescope statusbar applet, nothing else will be clickable.

I didn't install anything else, nor did I update any other apps, and it didn't happen before the update.

Any ideas?

Ouch, sounds like a serious defect
Does this happens if you call Telescope with Home key? Or only with statusbar applet?

It's definitely the statusbar applet. I uninstalled after confirming it would happen every time - first things on the statusbar stopped being clickable as well as on the desktop, eventually even things on apps you had open as well.

Now I still have Telescope and it works perfectly, just don't have the statusbar installed now so... no bugs with the main app.